Why in the News
States such as Uttar Pradesh, Andhra Pradesh and Bihar are shifting recurring free-power subsidies towards one-time capital support for rooftop solar under the Utility-Led Aggregation (ULA) model.
What is PM Surya Ghar Yojana?
- Ministry: Ministry of New and Renewable Energy (MNRE)
- Launch: 13 February 2024
- Target: 1 crore households with grid-connected rooftop solar by March 2027.
- Outlay: ₹75,021 crore.
- Benefit: Up to 300 units of free electricity per month.
- Central subsidy: ₹30,000/kW up to 2 kW, plus ₹18,000 for the third kW, capped at ₹78,000.
- Eligibility: Household must have a suitable roof and grid connection.
What is ULA?
- Utility-Led Aggregation (ULA) is a model where the distribution company (DISCOM) aggregates household demand and arranges rooftop solar installations at scale.
- States convert recurring electricity subsidies into one-time capital support for installing solar systems.
Why the Shift?
- Reduces recurring State subsidy burden.
- Creates a 25-year generating asset.
- Reduces DISCOM’s cost of supplying subsidised daytime electricity.
- Aggregated procurement can reduce installation costs.
Current Progress
- 52 lakh households had installed rooftop systems by 13 August.
- About 2 lakh of 30 lakh ULA installations are complete.
- Target: 1 crore households by March 2027.
Key Definitions
- Rooftop Solar: Solar photovoltaic system installed on a building roof and connected to the electricity distribution network.
- Net Metering: Allows surplus rooftop electricity exported to the grid to be adjusted against electricity consumed.
- DISCOM: Distribution Company responsible for electricity distribution.
- ALMM: Approved List of Models and Manufacturers for eligible solar modules.
Challenges
- Financial stress of DISCOMs
- High upfront installation costs
- Limited rooftop access for tenants and apartment residents
- No battery-storage subsidy
- Grid and transformer capacity constraints
- Dependence on imported solar cells and wafers
“[2025] Consider the following statements about ‘PM Surya Ghar Muft Bijli Yojana’:
I. It targets installation of one crore solar rooftop panels in the residential sector.
II. The Ministry of New and Renewable Energy aims to impart training on installation, operation, maintenance and repairs of solar rooftop systems at grassroot levels.
III. It aims to create more than three lakhs skilled manpower through fresh skilling and up-skilling, under scheme component of capacity building.
Which of the statements given above are correct?
(a) I and II only
(b) I and III only
(c) II and III only
(d) I, II and III.